Hopefully you’ve embarked on the busiest period of the year and will already be seeing the results of increased bookings and trade ahead of the Christmas rush. 

Even if it hasn’t kicked in just yet, we hope you are preserving your energy so you can get through the season in good spirits and humour. One way is to take regular small breaks and take your mind off any troubles.

An excellent distraction every week is our regular collection of all the important and interesting business and insolvency news stories you might have missed out on reading about.

So if you want to know why directors acting before the October Budget has greatly affected the most recent monthly insolvency figures; how HMRC will use Debt Collection Agencies (DCAs) and bailiffs in future and if the festive period will give the hospitality industry the strong finish to 2024 it needs – you can read all these stories and more at our advice centre page.

Brighton i360

A Unique visitor attraction in Brighton has gone into administration with debts of £51 million. 

The Brighton i360 is a 162-metre tall “vertical pier” based on the seafront that offers a panoramic view of the city, coastline and English Channel. 

First opened in 2016, the attraction will remain open while a buyer is sought with the owners blaming escalating costs, bad summer weather and the cost-of-living crisis “which have collectively led to a significant decline in consumer spending across the UK.”

A statement from directors said: “The Brighton i360 has become an iconic visitor attraction, welcoming hundreds of thousands of visitors each year, but unfortunately is now at real risk of closure unless a buyer can be found.”

When planning permission was first granted in 2006, the project was intended to be privately funded but local Green councillors agreed to take out a £36.2 million loan from the public works loan board. 

In 2022, the company asked councillors to consider new terms for the loan, a restructuring that meant the council would take nearly all the profits from Brighton i360 but visitor numbers fell.

Willand Biogas

A Biogas plant in Somerset has gone into administration after failing to secure new funding. 

Willand Biogas operate the plant at Cullompton and was already operating under a cloud as a local plant worker died at the facility due to health and safety failings contributing to an accidental death.

A statement from the business confirmed the news saying: “Unfortunately the operator of the plant ran into difficulties and the company was not able to obtain the necessary investment to keep the site operational. 

“The plant is being held in standby mode whilst a buyer is sought for the facility. It provides a great opportunity for a purchaser to operate a fully operable biomethane to grid plant in a short period. All equipment is on site with additional space to expand.”

Allplants

A Vegan meal kit company based in East-London has gone into administration. 

Allplants was founded in 2016 and traded online and with 100 partner retail outlets but had run into economic difficulties in recent years including rising food, transport and energy costs coupled with reduced consumer confidence and the ongoing cost-of-living crisis. 

A statement issued on behalf of the business said: “Allplants has grown to become a well-known and popular brand with its range of ethically-produced, healthy, plant-based ready-meals. 

“Indeed, in recent years, the company was successful in being awarded B Corp status, in recognition of its enhanced commitments to sustainability and environmental goals.  

“Unfortunately, however, the economic headwinds that have impacted many UK businesses over the past 12 months have been too challenging for the company to overcome. The business will continue to be traded for a short period to sell all remaining stock and in due course will be seeking to realise other assets including the Allplants brand.”

65 positions have been made redundant as a result.

Hickory (Scotland)

One of Scotland’s premier event catering businesses went into administration this week. 

Hickory (Scotland) was formed in 2012 but like many hospitality businesses experienced a long period of poor trading and margins as a result of Covid-19 which led to temporary closures of clients sites and further financial pressure. 

Working capital requirements became a pressing issue due in part to high levels of inflation, interest rates and the cost of living crisis.  As levels of activity started to recover this year, the company’s funding requirement grew but despite the best efforts of the directors, the businesses faced a cash flow challenge that proved insurmountable and could not continue trading as a result.

Camstead Homes

A residential construction business based in Leeds has gone into administration pausing a new development in Derwenthorpe being built for the Joseph Rowntree Housing Trust (JRHT). 

Thirty-one energy efficient homes were earmarked for private sale with a remaining nine reserved for social rent or shared ownership schemes. 

A statement issued from JRHT said: “We are deeply disappointed to share that Camstead Homes, the contractor responsible for building the final homes on the development, had entered administration. 

“We are working to understand the situation and its potential implications and our priority is to minimise disruption for everyone involved.”

A statement issued on behalf of the company said: “Like many companies operating across the construction sector, Camstead Homes had experienced sustained trading difficulties over 2024 due to various economic pressures. 

“While the directors sought to explore options to address these issues, unfortunately a solvent solution could not be found.

“2024 has been another challenging year for the building and construction industry, with housebuilders continuing to battle with the impact of rising raw material costs, wafer-thin margins and the impact of high interest rates and rising mortgage costs on consumers.

“While the Government’s planning reforms have given hope to many across the industry, unfortunately the trading difficulties encountered by Camstead Homes proved too challenging to overcome.”

As a result of the administration, 20 positions have been made redundant with immediate effect.

FunnyFuzzy

A company selling online pet supplies from China has been shut down after consumers reported being unable to obtain refunds for sub-standard goods or not receiving them at all. 

Following investigations from The Insolvency Service, it emerged that Funnyfuzzy UK Co Ltd had also filed false dormant accounts and failed to register for VAT despite evidence of more than £2.5 million passing through their PayPal account.

Cheryl Lambert, Chief Investigator at the Insolvency Service, said: “Consumers rightly expect that products they paid good money for are as advertised. They should be able to ask for refunds if they are not satisfied with what they receive. 

“Funnyfuzzy failed to adequately co-operate with our investigations, offering no explanation for online complaints from numerous customers that it had sold them low-quality or defective goods. The company also disguised its real trading by filing dormant accounts, putting itself at an advantage over businesses following the rules and paying the tax required of them.

“Companies registered in the UK are expected to file accurate accounts and trade in a manner which is transparent. Funnyfuzzy failed on both counts to do this which is why it has now been shut down and prevented from trading in the future.”

Insolvency Service investigations into Funnyfuzzy began in December 2023. They discovered the company had operated PayPal and Shopify accounts since May 2021, a month after they were set up on Companies House. 

The company accepted Amazon and Stripe payment methods and stated that they had received no complaints. This was contradicted by two thirds of reviews received on Trustpilot being “one star” for their service and products.

Funnyfuzzy also did not register for VAT and filed dormant accounts for the full years of 2022 and 2023. The company also had no presence at their registered office on Brighton Road in South Croydon and claims that it maintained a warehouse in Leicester were not supported by any evidence. 

Martin Swain, Director of Intelligence and Law Enforcement Liaison at Companies House, said: “Improving transparency over UK companies and delivering a more reliable register on Companies House to underpin business activity is a key priority. 

“As this case demonstrates, the government is committed to taking action against companies responsible for filing false accounts and misleading the public. 

“Enforcement action such as this by our partners at the Insolvency Service will help us improve the accuracy of the information on the register and protect innocent people from scams.”

Octagon Developments

A Luxury house builder based in Surrey with 45 years heritage has filed a notice to appoint administrators. 

Octagon Developments specialised in high quality luxury family homes primarily in London and the Home Counties. 

93 positions are in doubt as a result. 

Lemlec

A multi-discipline contractor based on the Isle of Wight has announced it is going into voluntary liquidation. 

Lemlec Ltd undertook electrical, plumbing, heating, gas and building services on the island with a staff of 25 operatives at their peak.

Unfortunately due to rising operational costs including fuel prices, vehicle maintenance and employer expenses, their debts have risen. These have also been exacerbated by clients going bankrupt or failing to pay for completed work. 

Managing Director Ryan Smith-Matthews said that the company is committed to honouring all commitments to customers with deposits safeguarded and any project already paid for completed. 

“Integrity has always been at the forefront of Lemlec’s mission. By ensuring that we complete all outstanding work, we’re demonstrating our commitment to the Isle of Wight community, which has supported us over the years.”

As the chilly weather starts to bite, we hope your business prospects and a full order book or house will be keeping you warm and busy enough. 

But if that isn’t how the end of your year is shaping up – don’t worry. There’s still time to end 2024 strong and begin next year in great shape. 

Get in touch with us to arrange a free initial consultation and depending on your goals, you can begin to work towards achieving them and being in the best possible position before Big Ben chimes on December 31st…